MC EXCLUSIVE Brookfield’s Nawal Saini says its portfolio is adding 10 percent of India’s incremental green capacity this year

Nawal Saini, Managing Partner, Head of Renewable Power & Transition South Asia and the Middle East, Brookfield

Brookfield, one of the world’s largest renewable energy investors, has rapidly scaled its India ambitions, building a 45-GW portfolio across solar, wind, storage and transition platforms.

Nawal Saini, Managing Partner and Head of Renewable Power & Transition, South Asia and the Middle East, Brookfield discussed with Moneycontrol in an exclusive conversation the firm’s growth strategy, boom in corporate demand for green power, the future of wind and storage along with the role of hydrogen, and why he believes India is poised to become a major global hub in renewables-related manufacturing.

Edited excerpts:

Q. Let’s start with the big picture. What is Brookfield’s long-term vision for the renewable energy business in India and globally?

Brookfield is one of the largest renewable energy platforms globally, with around $140 billion worth of AUM across solar, wind, hydro, pumped storage, battery storage, sustainable aviation fuel and carbon capture. We operate in over 50 countries across five continents, and what distinguishes us is the diversity of technologies and markets we operate in.

Three global forces are driving our growth — decarbonisation, de-globalisation and digitalization. Renewables and energy transition sit at the centre of all three. Clean energy is the cheapest form of energy. AI and data centres need vast amounts of power, which can be provided at scale by green power.

In India, our AUM is about $32 billion across infrastructure, renewable power & transition, real estate and private equity. When we began our renewables business here around 2018, we had roughly 300 MW of operating renewables. Today the portfolio is around 45 GW. Around 11–12 GW is operating, and 3 GW is coming online this year — which is nearly 10 percent of India's incremental power capacity. Next year the number is even bigger. We achieve this through our platforms, be it structured equity deals like Avaada, acquisitions like Cleanmax and Leap Green, and ground-up platforms like Evren, where we have committed over a billion dollars.

Q. How do you think about returns across acquisitions, greenfield projects and exits?

Our return philosophy is consistent, but the deployment strategy varies. After COVID, we raised $15 billion for the Brookfield Global Transition Fund I - then the world's largest transition fund.  We since launched Brookfield Global Transition Fund II (BGTF II), which raised $20 billion in fund commitments and strategic capital, surpassing its predecessor to become the world’s largest private fund dedicated to the clean-energy transition.  Recognizing the large and growing demand for decarbonisation solutions in emerging economies, Brookfield is doubling down on its presence in scaled emerging economies through the Brookfield-managed Climate Transition Fund (CTF), backed by a $1 billion commitment from ALTÉRRA to catalyze up to $5 billion for clean energy and transition investments.

A key element of these funds is additionality — fresh capacity creation. That’s why in India a large share of our capital goes into greenfield development: land, connectivity, PPAs and construction. At the same time, India has matured enough to allow capital recycling. We sold around 1.6 GW earlier this year, and with Cleanmax preparing for a public listing, more liquidity creation is likely. We back businesses that generate yield and also provide exit pathways for our LPs.

Q. Where is renewable-power demand coming from today — government discoms or corporates?

Both. Roughly 75 percent still comes from discoms, but the biggest structural shift is the explosion in corporate demand. Ten years ago, IPPs had to convince corporates to buy green power. Today corporates demand it. Boardrooms have taken clear net-zero positions. Export competitiveness now requires clean energy. And renewable power is simply the cheapest form of power, driving business competitiveness. Increasingly, manufacturers set up new projects in states where they can access green open-access power. That’s a fundamental behavioural shift in India’s industrial landscape.

Q. Solar has been the backbone of India’s renewable transition. How do you see wind, storage and other technologies evolving?

Solar will remain the dominant technology because it is mature, cost-competitive and quick to construct. But wind has a major role, especially for round-the-clock renewable supply. Solar peaks in the day; wind peaks in the evening. Batteries and pumped storage add another layer by giving predictability and dispatchability to renewable power. India will need over 300 GWh of battery storage over the next five to seven years, and as storage grows, renewable energy starts to behave more like baseload.

Q. Given the expected wind upcycle, are you actively evaluating acquisitions in that segment?

We evaluate every transaction. We play to our strength of being owner-operators and providing our portfolio companies the benefit of our scale, be it in the form of access to efficient capital, supply chain and procurement efficiencies or global corporate relationships. We can acquire platforms like Cleanmax and Leap Green and scale them or build large platforms from scratch like Evren. We focus on situations where our capital and operating expertise can accelerate growth.

Q. Several assets are currently on the block. How do you view valuations?

Valuation is always an art. The winning bidder pays the highest price, but that does not mean the value is wrong. They may have a competitive angle others don’t — maybe a PPA pipeline or the ability to contract an uncontracted asset. Different investors want different risk profiles: de-risked assets or under-construction assets. That diversity is healthy for the ecosystem and helps capital rotate.

Q. Earlier the big concern was PPAs not being honoured. Has that chapter closed?

Yes. India has moved beyond that phase. The sophistication of regulation here is world-class. Disputes happen everywhere in the world, but India has strong redressal mechanisms. After the LPS rules and court interventions, payment behaviour improved significantly. Large-scale private-sector capacity addition wouldn’t be possible if PPA sanctity were still a real concern.

Q. What about the recent noise on cancelled bids?

The government has clarified that. In India, stakeholders are heard, and better sense prevails. That clarity helps the sector move forward.

Q. How are you evaluating the green hydrogen and green ammonia opportunity?

We have been hearing about hydrogen for three to four years, and now with SECI issuing 15- to 20-year green ammonia contracts, the visibility is improving. These long-term contracts are essential to build the sector. India has strong natural advantages — some of the world’s cheapest renewable power, and strategic proximity to Japan and South Korea, which are major future buyers of green molecules. Hydrogen will scale the way solar scaled: slow at first, then rapidly once project structures mature. India also has an energy-security angle because green molecules reduce import dependence and save foreign exchange. Over time, this will add to the renewable-capacity requirements even further.

Q. Are you seriously evaluating investing in hydrogen?

We are constantly evaluating opportunities, including in partnership with molecule-side specialist. Hydrogen requires aligning electrons and molecules, which means additional technical complexity. But since 50 to 70 percent of hydrogen’s cost is renewable power — and that is what we are experts at. We will not take binary risks. We need a bankable contract, land, interconnect and tied-down project costs. If those fall into place, we can move quickly. Over the next three to four years, I expect us to be doing something meaningful in this space, maybe earlier.

Q. Are you using global learnings for this?

Absolutely. We evaluate hydrogen opportunities globally in Europe, the US and other markets. The learnings — contracting mechanisms, risk allocation, cost structures — are institutionalised within the firm. Those insights flow to India continuously and shape how we think about timing and execution.

Q. How are you approaching Make in India for renewables?

We were early movers. When we invested in Avaada, part of the capital went directly into setting up their manufacturing business. Avaada is now building nearly 8.5 GW of module capacity and 6 GW of cell capacity. Five years ago, India had only module assembly. Today we have cell and module lines, glass manufacturing is coming up, and backward integration is accelerating. In five years, India will likely have wafer and ingot capacity, and possibly even polysilicon manufacturing. India has the raw materials, the engineering talent and now the policy push to support this.

Q. Is transmission keeping pace with renewable growth?

Transmission tends to lag renewables because renewables are fast to build and transmission is relatively slow and complex. Rajasthan is an example where renewable capacity has come up faster than evacuation. This is not a demand problem — India has demand. It is a timing and infrastructure-execution issue. As storage capacity grows, some of these stresses will ease because excess power can be stored.

Q. What drives your expansion in Andhra Pradesh?

We are present in all major renewable-generating states, and Andhra Pradesh is one of them.  We recently signed an MOU with the Andhra Pradesh government to invest up to $12 billion in renewable energy projects across the state. Brookfield will develop, construct, and operate a diversified portfolio of solar, wind and storage projects. We have already commenced development and construction works for projects worth over US$ 2.5 billion, and we have the pipeline to do more in the state.

Having said that, we are also major players in other states including Rajasthan, Gujarat, Karnataka, Tamil Nadu, UP, Chhattisgarh and Maharashtra. Our ambition is national, and we will keep investing wherever the fundamentals allow us to deploy capital at scale.